ok in my dream i had a dog like my real dog but this dog transformed into a horse and i had a sword and i saw all the x-men people and , the n on my horse then she transformed in to a dog
then night fell and i was still there throwing a ball and then every time she jumped into the water the water turens like 3 shades of blue and then she stopped in the water then i woke up

I had a dream that I was in a lunatic asylum... and one night... one night me and a pal decide we don't like living in an asylum any more. We decide that we’re going to escape! So like we get up on to the roof, and there, just across the narrow gap, we see the rooftops of the town, stretching away in moon light... stretching away to freedom. Now I jump right across with no problem. But my friend, my friend daren't make the leap. Y'see he's afraid of falling... So then I have an idea. I say "Hey! I have my flash light with me. I will shine it across the gap between the buildings. You can walk across the beam and join me." But, my friend just shakes his head. He says... he says "What do you think I am, crazy? You would turn it off when I was half way across."

Well clearly you seeing the X-Men represents your wanting to become someone special, but seeing your dog transform tells you that you are not the special one. Instead your dog/horse is the special one. Of course your dog/horse represents your father who succeeded where you failed. The fact that you have a sword clearly says that you are gay.
As for the second part of your dream: You want to kill your dog, who represents your father, by drowning him. However, since water represents birth and life, you are infact making him more alive by your hate.